Etihad Cargo, Teleport Enhance SE Asia – Middle East Connectivity

Our Bureau - : Aug 15, 2024 - : 8:23 am

Etihad Cargo and Teleport, the logistics arm of AirAsia, have entered into a partnership aimed at increasing cargo capacity and frequency between Southeast Asia and the Middle East. The collaboration comes amid rising airfreight demand and growing trade between the...

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Trade between Gulf nations and emerging Asian economies has shown significant growth, rising from USD 383 billion in 2021 to USD 516 billion in 2022, with projections suggesting it could reach USD 757 billion by 2030. This growth outpaces trade with Western nations, including the US, UK, and the Euro Area. Concurrently, global air freight demand has seen double-digit growth, with a 14.1% increase recorded as of June 2024.

Since formalising their partnership in May, Teleport has utilised its freighters to transport goods such as machinery, raw materials, and electronic components from Ho Chi Minh to Kuala Lumpur twice a week. These shipments are then connected via Etihad’s network to Abu Dhabi and beyond. The partnership also enables both companies to optimise passenger belly capacity, particularly from leisure destinations such as Bali and Phuket, by leveraging each other’s network strengths.

Etihad Cargo aims to enhance its connectivity in Southeast Asia through Teleport’s extensive regional network, while Teleport benefits from Etihad’s established global reach into the Middle East, Europe, the Americas, and Africa. By the end of the year, the collaboration is expected to facilitate the movement of 1,600 tonnes of cargo between the two regions, with potential plans to increase flight frequency and explore new routes.

Stanislas Brun, Vice President of Cargo at Etihad Cargo said, “We continue to anchor our strategy on key partnerships that will enable us to better serve our customer needs while supporting global trade. This recent partnership with Teleport is important to enhance our connectivity to Southeast Asia, and we are confident that through the integration of their freighter operations and our capacity, we are able to continue to grow and build a more efficient and robust network that better serves both regions, and quickly. The market environment is highly favourable to grow our presence here today, and with a strong air partner like Teleport.”

Jagedeswaran Nadrajah, Head of Air Partners at Teleport, commented “The integration of Etihad’s global network with our largest Southeast Asia network has opened up a more dynamic way to connect cargo between these two regions - leveraging on the strengths of both our networks. This is valuable to both our existing and new customers trading between two important regions. This sort of synergy is testament to what Teleport has been building through its Air Partners programme as a win-win solution for all Teleport Air Partners, where we can continue to build and grow, and never fly empty.”

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